Labor is the largest expense (40% of total operating cost) for service providers and is critical to their profitability. Tow and road service operators have experienced steadily rising labor costs since 2012.
Prices for new trucks have outpaced consumer inflation, putting additional cost burden on providers. Trucks account for 20% of total operating costs.
Fuel prices have been rising since 2016, making it more expensive for service providers to perform each job. Fuel constitutes approximately 15% of a service provider's operating cost.